Some Shops May Provide a Lot of Information to a Customer

question 65

Multiple Choice

Some shops may provide a lot of information to a customer at a high cost to the store.If the customer then buys the product cheaper from a different store that does not provide this information, a free-rider problem emerges.A possible solution to this problem is:

• A)resale price maintenance
• B)cost-plus pricing
• C)tying
• D)marginal-cost pricing

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Definitions:

Internal Control

Protocols and processes designed by a business to secure the authenticity of its financial and accounting information, enhance accountability, and impede fraudulent operations.

Control Environment

The set of standards, processes, and structures that provide the foundation for carrying out internal control across the organization.

Proofs And Security Measures

Protocols and systems implemented to protect data, transactions, and assets against unauthorized access, theft, or modification.

Petty Cash Fund

A petty cash fund is a small amount of cash kept on hand for making immediate payments for miscellaneous small expenses.